Australia posts first budget surplus in 15 years as tax revenues soar

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Australia posts first budget surplus in 15 years as tax revenues soar
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Robust job growth and bumper mining profits propel a US$14.2 billion surplus, surpassing estimates by fivefold.

To mitigate inflationary pressures, the government plans to funnel 95% of revenue upgrades back into the budget’s bottom line.

Figures from the Treasury showed the surplus was around 0.9% of gross domestic product, and the government will return 95% of revenue upgrades to the budget bottom line in a bid to avoid adding to inflation. However, the budget is projected to return to deficit this year amid intensifying spending pressures on healthcare, energy and defence. Higher interest rates and a slower global economy are set to slow the domestic labour market.

“We know that it’s not an end in itself, but it’s a really important, much stronger foundation from which to face the uncertainties ahead, and the pressures on the budget are intensifying rather than easing.”

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